E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 26493, Weakens Under 26292

June E-mini Dow Jones Industrial Average futures closed higher on Friday, while posting an inside move. The chart pattern indicates investor indecision and impending volatility. Despite the higher close, the Dow is still diverging from the S&P 500 Index and the NASDAQ Composite, which posted record closes.

Friday’s rally was supported by better-than-expected economic data, which offset a mixed batch of corporate earnings. The Commerce Department reported first-quarter gross domestic product rose 3.2%, topping the consensus economist estimate of 2.5%.

Offsetting the good news from the GDP report, were lower performances from Dow members Exxon and Intel. Earlier in the week, the blue chip average was pressured by steep declines in Caterpillar and 3M. Microsoft performed well, however, reaching $1 trillion in valuation.

On Friday, June E-mini Dow Jones Industrial Average futures settled at 26517, up 77 or +0.29%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 26694 on April 24 and the subsequent confirmation of the potentially bearish chart pattern on Thursday.

A trade through 26694 will negate the closing price reversal top and signal a resumption of the uptrend. The next target is the October 3, 2018 main top at 26988.

On the downside, the main trend changes to down on a move through 26060. However, losses could be limited because of a major retracement zone.

The short-term range is 26694 to 26292. Its 50% level or pivot is 26493.

The intermediate range is 26060 to 26694. Its retracement zone is 26377 to 26302.

The main range is 25377 to 26694. If the main trend changes to down then look for the selling to extend into its retracement zone at 25880.

Daily Swing Chart Technical Forecast

Based on last week’s price action and the close at 26517, the direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the short-term pivot at 26493.

Bullish Scenario

A sustained move over 26493 will indicate the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into 26694. Taking out this level could trigger an acceleration to the upside with 26988 the next major upside target.

Bearish Scenario

A sustained move under 26493 will signal the presence of sellers. This could trigger a break into the intermediate 50% level at 26377. If this fails then look for the selling to extend into the intermediate Fibonacci level at 26302, followed by Thursday’s low at 26292.

Taking out 26292 could trigger an acceleration to the downside with the next targets coming in at 26060 and 26036.